As the federal government forges ahead with a plan to provide industry-administered pooled pensions to Canadians without a workplace plan, one of the former governors of the Bank of Canada urged the country to keep talking about an expanded Canada Pension Plan to fill retirement savings gaps.

“I think that is an issue we should continue to think about despite the decisions … governments have made,” David Dodge said during a speech in Toronto on Tuesday.

He floated the idea of an expanded CPP that would raise the percentage of income returned to as much as 40%, with the potential for voluntary contributions to top up future income for higher earners.

CPP currently replaces up to one-quarter of income, but hits a ceiling based on average income.

Mr. Dodge, who made his remarks in a speech at a conference on pension sustainability in Toronto, said CPP has “a very sound design.” He added that it is already national and portable — a key objective of Ottawa’s proposed pooled registered pension plans.

What’s more, Mr. Dodge said, an expanded plan could be administered by a system already in place — the Canada Pension Plan Investment Board.

Following his speech, Mr. Dodge said he is not enamoured of the federal government plan to roll out a new industry-administered pooled pension option for people who aren’t covered by workplace plans.

Referring to a term coined by another speaker who called pooled registered pension plans “jumped-up RRSPs,” Mr. Dodge said, “I guess I would be closer to that.”

He questioned how PRPPs would remain low-cost while maintaining choice, particularly when there is no mechanism in place to spread a pensioner’s payout over a retirement that could last many years.

Outside a very large pension fund, “you can’t get anybody to annuitize the benefits at a reasonable cost,” Mr. Dodge said.

Quebec has endorsed the PRPP plan and Alberta’s government is continuing to work toward possible companion legislation, but Ontario is understood to be reluctant to move forward.

Ted Menzies, the federal minister in charge of PRPPs, told the Financial Post last week that Ottawa is counting on companion legislation in all provinces so the plans will be portable for workers who move.

He expanded on that message Tuesday.

“Obviously we expect all provinces to adopt their own PRPP legislation, but we recognize that this may not happen simultaneously,” Mr Menzies said.

“As this process moves forward, I would expect to hear from citizens in provinces whose governments have not yet put forward PRPP legislation,” he added, saying these governments could find themselves facing criticism for not making the option available.

Industry sources expect the topic of retirement savings to be the subject of many private discussions in the lead-up to a meeting of federal and provincial finance ministers next month.